3 Housing Market Myths Buyers and Sellers Should Stop Waiting On

There’s a lot of uncertainty in the market right now, and the headlines can make it feel even more overwhelming. So if you’re thinking about buying a home, it’s understandable if you’re feeling a little unsure.

A recent CNBC study asked homebuyers what concerns them most, and three worries came up repeatedly:

• Mortgage rates
• available inventory
• home prices.

But much of what you’re hearing may be driven more by misconceptions than facts. So let’s break it down and separate reality from the noise.

Misconception #1: “I’ll Wait Because Mortgage Rates Are About To Drop Big”

One idea circulating on social media is that mortgage rates are about to fall sharply, so buyers should wait.

But is that actually what experts expect?

While rates have eased a bit recently, forecasts don’t point to a major drop. The more likely scenario is that rates stay somewhere in the low 6% range this year. 

And that’s not a dramatic shift from where rates currently stand.

Of course, this depends on where inflation and the broader economy go from here. But based on today’s outlook, waiting for a major drop in rates may not play out the way some buyers are hoping. As U.S. News explains:

“Mortgage rates are expected to stay fairly steady over the next few quarters…”

And even with rates where they are today, buying is already more affordable than it was a year ago. So even if rates don’t move much, conditions are still better than they were.

Misconception #2: “There’s Too Much Inventory on the Market Right Now”

You’ve probably heard that inventory is up — and nationally, that’s true. The number of homes for sale is about 8% higher than this time last year. But that isn’t necessarily a bad thing. In fact, it’s giving buyers a little more breathing room.

The issue is that some headlines are turning good news into something that sounds concerning. They focus on inventory being at its highest level since 2019 or on the number of new homes being built, which can make it seem like supply is rising too much, too quickly.

But that’s not what the broader data shows.

According to Realtor.com, even though inventory is higher than last year, it’s still nearly 14% below where it was during the last normal housing market from 2017 to 2019.

Inventory can vary a lot by market, but today only 9 states have more homes for sale than they did before the pandemic. That’s a big reason why supply is still too limited to create anything like the 2008 housing crash.

Misconception #3: “Home Prices Are Going To Crash Soon”

You’ve probably seen this claim, too. The confusion comes from the fact that some markets are seeing slight price declines, and influencers are turning that into “prices are crashing.” But that’s not what’s actually happening.

Most areas are still seeing home prices rise, not fall. That’s because many homeowners are choosing not to sell and give up the low mortgage rates they locked in a few years ago, which is limiting how much inventory can grow.

And since inventory is still below pre-pandemic norms, there simply aren’t enough homes for sale to create a price crash. Even in markets with more supply, some sellers are pulling their homes off the market rather than making major price cuts.

Those are three major reasons prices are not headed for a crash.

And even in markets seeing modest declines, the pullback is not enough to erase the significant gains most homeowners have built over the past five years.

That’s not a crash — it’s prices leveling out after several years of record-breaking growth.

Bottom Line

Online headlines can make the market feel worse than it really is. For a clear, data-backed view of what’s actually happening, lean on a trusted local real estate professional.

Connect with a local agent who can help separate fact from fiction in today’s market.